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Soup in Brazil

Oct 2014|Pages: 54

Price: US$900

About this Report

Executive Summary

TRENDS

Instant soup has become increasingly popular in Brazil in recent years due to the fact that, apart from being very convenient, it was first introduced as a health option to be consumed during a break in the day. With its health appeal diminishing because of the increasing appeal of other options such as biscuits, snacks bars and nuts, mainly due to the Ministry of Health and the National Health Surveillance Agency's efforts in decreasing the salt content of several packaged food categories, including soup, the category, in spite of its growth, is set to decline in the future, both in volume and value terms.

COMPETITIVE LANDSCAPE

Nestlé Brasil Ltda leads in sales of soup and is expected to account for a 32% value share in 2014, seeing a small increase compared with the previous year. Its leading position is derived from its strong performance in dehydrated soup. In the review period its main strategy has been to develop new flavours and to advertise novelties mainly on social media sites such as Facebook. Its latest campaign, named “Ideias para” (Ideas for), aims to collect ideas for recipe variation using Maggi products, targeting younger consumers who normally see their grandmothers and mothers using the products.

PROSPECTS

Sales of soup are set to maintain positive growth, and are expected to rise at a value CAGR of 8% over the forecast period to reach R$2.1 billion in 2019. However, the category is expected to be more static in volume terms with a CAGR of 6%. In comparison with the review period these rates are declining and can be explained by the fact that the category is becoming more mature and reaching a higher penetration rate, especially true for dehydrated soup.